[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1947 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1947

  To exclude the discharge of certain Federal student loans from the 
                      calculation of gross income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2015

  Mr. Merkley introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To exclude the discharge of certain Federal student loans from the 
                      calculation of gross income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Income-Based Repayment Debt 
Forgiveness Act''.

SEC. 2. FORGIVENESS OF CERTAIN FEDERAL STUDENT LOANS EXCLUDED FROM 
              INCOME TAX.

    (a) In General.--Paragraph (1) of section 108(f) of the Internal 
Revenue Code of 1986 is amended by striking ``any student loan if'' and 
all that follows and inserting ``any student loan if--
                    ``(A) such discharge was pursuant to a provision of 
                such loan under which all or part of the indebtedness 
                of the individual would be discharged if the individual 
                worked for a certain period of time in certain 
                professions for any of a broad class of employers, or
                    ``(B) in the case of a loan made by the United 
                States or an instrumentality or agency thereof, such 
                discharge was pursuant to any Federal program or 
                provision of Federal law which provides for income 
                contingent or income-based repayment of such loan.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to discharges of loans that occur on or after July 1, 2016.
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